1. Unit 3 – Chapter 6 The Journal and Source Documents
Tomorrow we will do quiz on Chapter 6.

2. HST
Businesses should send their HST amounts (that businesses collected) to Canada Revenue Agency.
Which businesses are required to register with CRA for HST remittance?
Answer: Any business with sales of taxable goods (and services) of $ sales or more per quarter (or $ sales a month) is required to complete a HST registration.

3. HST How often do you have to remit HST amounts?
The frequency depends on the volume of annual sales revenue amount.
Small businesses would remit once a year, but most big corporations would remit once a month.

4. Remitting the HST
On Feb 1st, Bestbuy sold HST (130) to a customer who paid cash.
Feb 1 Cash $1130
HST Payable $130
Sales Revenue $1000
On Feb 15 Bestbuy purchased HST (26) from Staples.
Feb 15 Office Supplies $200
HST Recoverable $26
Purchase $226

5. Remitting the HST
On March 1, Bestbuy send HST remittance to CRA. How much should they send and what would be the journal entry?
They would send $104 to CRA.
March 1 HST Payable $130
Bank $104
HST Recoverable $26